Do Companies With Heart Make Money? Part 2

In the previous post, we discussed that a Firm of Endearment (FoE) was more profitable over time than either an S&P 500 or a “Good to Great” company. Additionally, Raj Sisodia, David Wolfe & Jag Sheth, who wrote Firms of Endearment, determined that the key to these profitable FoEs is their culture.

Strongest Competitive Difference – FoE Secret Ingredient

Organizational Culture - 3 Primary ElementsThe authors say that corporate culture is what matters most to FoEs and that it is the strongest competitive difference. From their point of view, culture is the secret FoE ingredient and the book outlines three primary culture elements and the cultural characteristics that FOEs share. Read more

Do Companies With Heart Make Money? Part 1

The answer is unequivocally yes. In the book, Firms of Endearment, Raj Sisodia, David Wolfe & Jag Sheth, did a study of companies that had heart. Each company meeting a certain criteria gets put on the list as a Firm of Endearment (FoE). The authors found that companies with heart most definitely made money and were very profitable over time. Read more